5 Bookkeeping Tips for the Creative Entrepreneur

Hey creatives, let's chat! 

I work with a lot of creative business owners. From copywriters, to designers, to photographers... y'all are my people! You inspire me so much with what you do. I literally have zero creative bone in me. I am all about numbers!

My guess is that the thought of numbers, bookkeeping and finances makes you cringe. Maybe it makes you feel anxious and break out in a nervous sweat. Or maybe you understand bookkeeping but it's that dreaded task that never gets done. 

Either way, I am here for you and I am going to break down five bookkeeping tips to help ease that stress! 

1. Simplify your systems.

Easy and understandable bookkeeping comes from simplified systems. Think about Marie Kondoing your finances. You want to make it easy for clients to pay, for you to receive the money and to be able to organize your numbers. If you have multiple ways of receiving payments, is there a way you can consolidate? 

p.s. If you are a service based soloprenuer... Stripe and PayPal are my favorite! 

Another way to simplify things is to have a customized chart of accounts. Your chart of accounts is basically the different categories your business has for money to be grouped in. You will have income categories and expense categories, plus a few more, but we can talk about those later. 

2. Have separate business and personal bank accounts.

Honestly, this should be number one, but it falls really good under simplifying your systems. 

By having separate bank accounts, you're operating like a real business owner. It makes things much easier to track so when tax time comes, you aren't going through all your personal transactions trying to remember if it was for personal use or business use.  

You need to have a clear line between business and personal so that you are able to accurately know how your business is doing. This way you can project the future.

By having your finances separate, you are able to make sure you get as many tax deductions as you can and you aren't missing anything that was mixed in the personal side of things.

3. Create and use a bookkeeping system that works for you.

There are so many different softwares out there for bookkeeping. How do you know what one is best? Do you actually need a software? 

No, technically you don't need a software. If you are just starting out you can use a spreadsheet like my DIY No-Stress Money Manager. This is a great option for someone that doesn't have a ton of transactions and isn't able to justify the monthly cost of a software. 

BUT there does come a time where a spreadsheet just doesn't cut it. A software will help cut down on bookkeeping time and help minimize chances for error. My favorite software is Xero, but Quickbooks Online (not the self-employed version) is a good option to. It really depends on your business and how you receive payments, so do you research! 

Whatever it is, just make sure you are understand it fully. We don't want you to throw it to the side a few months in and be right back where you are! 

4. Have a monthly date with your money.

Right now, pause reading this... go to your calendar and block out some time each month to do your bookkeeping. JUST DO IT! 

I promise, you will thank me later. If you don't commit to reviewing your numbers each month, things will get behind. You will start feeling overwhelmed again and you will not have the insight to make good business decisions. 

Take time to organize your numbers, then review them. See what is working and what isn't. Did that launch go as planned? Are there expenses you need to cut? 

5. Lean on the experts.

There is no such thing as being "bad at numbers." You may not feel confident about them, but that is why there are experts educating others about finances. 

Read books, listen to podcasts, take courses, read blogs... there is so much information out there when it comes to business finances. That is one reason why I created this blog, for you to have a place to come and learn about money management. 

Whether you started your business today or you started it years ago, I always recommend an accountant to help you when tax time comes. They will make sure everything is done right and the IRS has everything they need. We don't want the IRS knocking down your doors. Kidding... they won't do that! 

And of course, if bookkeeping is just something that overwhelms you no matter what and you are ready to have help understanding your finances without having to crunch the numbers, I'm here ready to help! You can learn more about our monthly bookkeeping services here.